One Key Mistake More than 50% of Small Businesses Make

by Halisi

Once upon a time there was a cute little crafts shop.  People came in the shop often, mainly to talk for hours with the owner and to sip on the coffee that they purchased.  The owner loved working her crafts shop but day after day she was steadily loosing money.  The people that had helped her open the shop (insert “investors” or “bank”) didn’t know what to do.  They made suggestions and she made suggestions – some they tried and some they discarded.  Nothing seemed to make a difference.  They decided to keep the crafts shop close during the slow times; the problem was that a lot of time was the “slow time”.  In the end they had to close the shop because it was loosing money each day it stayed open.

The owners opened that shop without doing one minute of market research.  They operated the shop without doing any advertising – Google didn’t even know that the shop existed!  It is no wonder that the cute little crafts shop, with the lovable owner, failed.

Now the owners of the property have come up with another “brilliant” idea.  They’re going to change the crafts shop into a book store.  Once again they have done no market research nor do they have a business plan.  What are the chances of success?  Less than 50% of businesses last more than 5 years – so I guess they’re just flipping a coin.

EVERY business should have a business plan and encompassed in that business plan is a strategy for success.  Does the Denver Metro area really need another book store?  My knee jerk reaction says “NO”.  So then I ask, what’s so special about this bookstore?   You should be asking yourself the same thing; no matter what business you’re in.  Why am I better than the competition or how am I different than the competition in a way that my customers care about?  If you cannot answer that question – figure it out quickly or close your doors.  If you don’t know, no one else will know.

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